Wizzard Closes Acquisition of MedivoxRx Technologies
Wizzard Software closed its acquisition of MedivoxRx Technologies on April 23. The all stock and debt transaction involves payment of consideration valued at $550,000. Based on meeting specific revenue and profit projections, MedivoxRx has the ability to receive additional shares of Wizzard in the future. MedivoxRx will operate as a wholly-owned subsidiary of Wizzard and will retain its current management team.
Wizzard management believes that the MedivoxRx acquisition accelerates Wizzard's growth strategy by providing a well-received product at a time when the pharmacy industry is seeking a solution to the growing compliance with prescription medication problem. Additionally, "Rex" the talking prescription bottle, offers Wizzard a platform from which to demonstrate its text-to-speech technology and products on a wide-scale consumer basis.
The company plans to begin marketing Rex to pharmacies in the United States immediately and in European pharmacies within the next six months. MedivoxRx can create "talking" prescription bottles in up to 30 different languages for worldwide appeal and distribution. Wizzard plans to begin marketing the next generation of MedivoxRx Talking Prescription Bottle in the third quarter of 2004 and anticipates revenues for the product of $700,000 in
2004, $9,600,000 in 2005 and $22,375,000 in 2006. While there can be no assurances that Wizzard will hit these sales projections, management feels that with a market size of 3.2 billion prescriptions filled each year by approximately 55,000 pharmacies in the United States alone, estimating less than one tenth of one percent of the market by the year 2006 is an obtainable target.
Using microprocessor electronics and advanced text-to-speech technology from Wizzard Software, pharmacists automatically create a "talking" label while the traditional instruction label is being printed. The prescription bottle then talks to the patient when a button is pressed describing the name of the medication, the dosage the patient should consume, the frequency, refill instructions, warnings and other educational information necessary to educate and help everyone take their prescription medications properly. There are approximately 3.2 billion prescriptions filled each year in the United States and pharmaceutical errors create $45-$80 billion in additional medical spending with the number one error being identified as labeling problems and education.